The mobile phone was once considered a revolutionary product, only for the rich and people within the business world. Today, it's a communication tool to stay in contact with other people but importantly we all have them! The problem with the mobile phone is it can get us all into debt.
The mobile phone typically charges us 12p for a text message however when we phone other mobiles the cost can be up to 40p per minute - an hour call would cost £24! The home phone / landline cost would be far less expensive. The cost of using a mobile phone can soon sky rocket if you're not careful.
Also, watch out for roaming charges - these have been know to run into the thousands of pounds of debt. Roaming charges are when your phone cannot connect to the internet from your usual provider. The back up roaming company will charge you roguhly £3 per megabyte you download but check the small print on this. Every web page you look at will automatically download images and content which will then charge you! Usually people try and use their internet on their phone overseas and this is how charges are incurred.
"A good tip is to check if there is available WiFi nearby as this won't incur roaming charges"
You can avoid roaming charges by checking your setting and switching the roaming off.
New EU Regulations
The European Union has started to implement new regulations which will take effect from 2012 which will limit the roam charges you could face. A company will not be able to charge you more than 81p per megabyte from 2012. By 2014 that should have been reduced to around 40p. It would found in a recent survey that the average phone bill for people returning from holiday was £149.
Tips to avoid high mobile phone debts
- Only use your mobile when you are out of the house - if you have the house phone then use that instead (unless you are on a contract phone and have free minutes).
- Monitor your free minutes carefully! Most people get into debt because they haven't checked how many available minutes they have and they've exceeded the level.
- Turn off data roaming (it'll be in your hand book)
- Budget for your phone and stick to it
- WiFi is usually free - look for the WiFi sign!
